WeChat Proprietor Tencent Seeks $2 Billion Loan for FinTech Expansion
Monday, April 18, 2016
The Chinese internet giant Tencent Holdings Ltd, most famous for its WeChat messaging app, is reported to be soliciting a loan that could run as high as two billion dollars in order to deepen its interests in the FinTech sector.
The information was provided to Reuters from undisclosed sources who said that they were not authorised to discuss the matter. According to the sources Tencent is proposing a bullet loan of between $1.5-$2 billion. Under the arrangements of such a loan, the entire amount is repaid at the end of term.
The sources added that Tencent is likely to be considering the same group of 19 banks that it turned to for its loan in December of last year, including HSBC, Citigroup, Hong Kong’s Bank of China, Mizuho Bank and ANZ. Tencent’s spokeswoman declined to comment on the story.
The holding company, which claims to cater to China’s largest internet community, and which is dedicated to providing ‘one-stop online lifestyle services’, hit a market cap of $200 billion a year ago, after an increase of 52% in the four months leading up to the assessment.